This is regarding TDS in IN version. I am using NAV 2009.
I am trying to create NOD lines for a customer, but while doing so, the system is not looking up at TDS Nature of Deduction, but TCS nature of collection.
I remember that in 4.0, it looked up for TDS nature of deduction.
Please let me know behind the logic of this lookup, and how can I calculate TDS while receiving payment from a customer.
Thanks.
Sam Sung
0
Comments
TDS is actually a deduction while TCS is a collection of
tax at source, meaning thereby, if X makes payment of Rs.
100 to Y and such payment is covered under the provisions
of tds, then X will have to deduct tds say Rs. 10 and then
will make payment of Rs. 90 to Y.
While, if X sells goods worth Rs. 100 to Y and such goods
are covered under the provisions of tcs, then X will
collect Rs. 10 more from Y and hence the sale will be for
Rs. 110.
In both the cases Rs. 10 will be deposited to govt. account.
Hope it will clarify the provision a little clear.
For Customers, we use TCS..why do want to use TDS?
Previously in 4.0. there were 2 seperate forms for TDS and TCS
but now we have only 1 form and based on the Type selection at header, it will open TDS or TCS in lines..
-Mohana
http://mohana-dynamicsnav.blogspot.in/
https://www.facebook.com/MohanaDynamicsNav
Let me explain you with an example.
X=Receiver of service and Y=Provider of service.
X receives invoice from Y and puts entry in his system-
Service A/c Dr. 100
Y Cr. 100
while, Y makes and entry as-
X a/c Dr. 100
Income A/c Cr. 100
Now X pays as-
Y Dr. 100
TDS Cr. 10
Bank Cr 90
and Y receives as-
Bank A/c Dr. 90
TDS Recoverable Dr. 10
X Cr. 100
Now how does I set up Y's system to receive Rs. 10 Less?? Anyhow, Rs.10 is the Tax Deducted as source for Y too.
I may sound wierd as I am not an accountant, and my accountant is not available.
Thus, appreciate if you could help me in explaining the logic and setup.
in your case Y-->X should be TDS and X-->Y should be TCS (as per my above example)
wait for any functional expert reply..
-Mohana
http://mohana-dynamicsnav.blogspot.in/
https://www.facebook.com/MohanaDynamicsNav
The entry of tds receivable which would normally go to advance tax has to be posted manually.
http://ssdynamics.co.in
Deep
India